The introduction of Level 4 autonomous driving
Nio, a company originated from China will design and manufacture a self-driving system. The designing of the project was given in good hands of Mobileye, it will help the firm to achieve Level 4 category autonomous operation. The Level 4 autonomous driving enables a car to drive without human assistance in some predetermined places like the roads which are built to support these kinds of vehicle.
Amnon Shashua, the President and Chief Executive at Mobileye was quite happy about the collaboration and emphasized how this will bring the opportunity to make roads safer in China. The deal will allow Mobileye to collect data that is in accordance with Chinese Law.
The deal was signed after Nio was chosen as one of the carmakers to test a prototype of autonomous vehicles by the government of Shanghai. Nio also received a similar license to test autonomous cars in California. The new opportunity might provide a much-needed push for the carmaker, as it is thinking about cutting jobs and find new sources of funding due to rising losses.
The company has suffered significant losses this year
The company has disclosed the loss of 3.3 billion Yuan in its second quarter. This has forced the Founder, Chairman and Chief Executive of the company William Li Bin cut 7,800 employees in the third quarter. The shares of the company also suffered this year as it has fallen 62%.
In an issued statement Li said, “We look forward to building our strategic collaboration with Mobileye in autonomous driving technology development to further enhance the safety and capabilities of our vehicles as we strive to be the next-generation car company.”
The Chinese government has reduced the subsidy provided to carmakers that have added more difficulty for already suffering company. The policy change by the authorities is to bring improved technological standards in the market of green cars.